South Africa's rand slightly firmer, stocks fall

* Rand ekes out gains in turbulent trade
* Sanlam under pressure as stocks fall
* Bonds also weaker
(Updates prices)
By Mfuneko Toyana and Patricia Aruo
JOHANNESBURG, Dec 5 (Reuters) - South Africa's rand firmed
on Wednesday, regaining some of the ground it lost overnight as
concerns of a recession in the United States wobbled the dollar.
At 1500 GMT the rand was 0.2 percent firmer at
13.8125 per dollar, having touched a session-best 13.7275.
The greenback came under renewed pressure on Wednesday as an
inversion in part of the Treasury yield curve caused concern
about a possible U.S. recession.
The rand rallied to a fresh four-month high of 13.5425 on
Tuesday after third quarter growth data showed the economy was
out of recession.
The currency however was back on the ropes as parliament
approved a report endorsing a constitutional amendment that
would allow land expropriations without
compensation.
Traders said the short-term technical picture was uncertain
while fundamentals would continue to hinge on international
events around global growth and the simmering trade war.
"The fact that background fundamentals in the form of
concerns over global growth are impacting on risk appetite,"
said Investec analysts in a note. "They offer further impetus to
the move which looks set to result in a short-term bounce as we
head into the U.S. labour data tomorrow and the payrolls figures
on Friday."
On the bourse, stocks fell with Sanlam among the
biggest decliners after the insurer reported lower 10-month
profit.
Sanlam slumped 4 percent to 76.84 rand after the nation's
biggest insurer said normalised headline earnings were down 10
percent in the ten month to October.
Overall, traders took their cue from weaker global markets
following a sharp fall on Wall Street overnight, said Vasili
Girasis, equities trader at BP Bernstein.
The All Share index fell 1 percent to 51,697 points
and the blue-chip Top 40 index lost by the same margin
to 45,674 points.
Banks were also under pressure with Investec
skidding 3.3 percent as the lender started trading without the
rights to its next dividend payout.
In fixed income, bonds were weaker, with the yield on the
benchmark 2026 paper up 5.5 basis points to 8.975
percent.
(Editing by Peter Graff)
2018-12-05 17:31:55

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